Finance Minister Heng Swee Keat outlined three major shifts Singapore must contend with in the coming years, as he delivers Budget 2018 this afternoon.
First, the Minister said that there is a shift in global economic weights, with Asia playing a larger role in the global economy. The Minister then pointed to the emergence of new technologies as the second major shift that will challenge the economy.
The final major shift is demographic transition, particularly coping with the aging population in Singapore.
To cope with these shifts, the Budget will focus on the following four aims:
- To develop a vibrant and innovative economy
- To build a smart, green and liveable city
- To foster a caring and cohesive society
- To plan ahead for a fiscally sustainable and secure future
The Minister said that the economy must transform and stressed that we require more resources to cope with these challenges, amid greater geo-political competition.
His remarks appear to foreshadow the introduction of a tax hike, as predicted by numerous analysts in the run-up to the Budget.